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Apple faces tariff threat from Trump over India manufacturing

Northeast NewsbyNortheast News
May 24, 2025
in Business, Neighbours
US Donald Trump (POTUS45/X)
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US President Donald Trump has issued a strong warning to Apple, stating that while the company is free to expand manufacturing operations in India, it will not be allowed to sell its products in the US market without facing tariffs if production shifts overseas.

Speaking at the White House on Friday while signing executive orders aimed at promoting U.S. nuclear energy, Trump said he was surprised to learn Apple CEO Tim Cook was moving production to India.

“I had an understanding with Tim that he wouldn’t do this,” Trump said.

“He said he’s going to India to build plants. I said, ‘That’s okay, but you’re not going to sell in the U.S. without tariffs. If you want to sell here, build here.’”

Trump reiterated this position in a social media post, threatening a 25% tariff on iPhones sold in the US that are not manufactured domestically.

“I informed Tim Cook a long time ago that iPhones sold in the United States should be built in the United States—not in India or anywhere else. If that doesn’t happen, Apple must pay at least a 25% tariff,” Trump wrote.

This statement follows comments Trump made last week in Doha, where he told executives that Apple should prioritize US-based manufacturing instead of expanding operations in India.

He criticised India’s high tariff regime, claiming it made US exports difficult, despite recent indications that India may be easing import duties for American companies.

Apple CEO Tim Cook, during the company’s Q2 2025 earnings call, stated that most iPhones sold in the US this quarter would originate from India, while other products like iPads, Macs, Apple Watches, and AirPods would primarily be produced in Vietnam.

Industry analysts see Trump’s stance as consistent with his long-standing push to bring manufacturing back to the U.S., although they warn that such a move is unlikely to happen quickly—or cheaply.

“This is a familiar Trump tactic,” said Tarun Pathak, Research Director at Counterpoint Research.

“He wants Apple to localise more of its supply chain in the U.S., but moving large-scale production back home would be far more expensive than assembling in India.”

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Neil Shah, Vice President at Counterpoint, added that Apple has made significant investments in India’s manufacturing ecosystem and is increasingly using Indian plants to supply iPhones to the US market.

“India is scaling up to potentially meet all U.S. iPhone demand in the future,” Shah said.

“By 2025, we expect made-in-India iPhones to account for 25%–30% of global shipments, up from 18% in 2024.”

Tags: AppleDonald TrumpIndiaiPhoneManufactureTariff
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